PRESENTATION BEFORE THE SIXTH CENTRAL PAY COMMISSION

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PRESENTATION BEFORE THE SIXTH CENTRAL PAY
COMMISSION

• Saroj Bala,
• Director General NADT, Nagpur

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• Where efficiency means more money, outlay on
  personnel should rightly be considered an
  investment and
• not expenditure
• - Wanchoo
  Committee

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The National Academy of Direct Taxes

• Engaged in training officers and staff of the
  Income Tax Department for more than 50 years
• Total number of employees of IT Dept 59,682
• Number of IRS officers 3,904
• Assisted by 7 RTIs AND 22 MSTUs located all over
  India
• NADT is headed by a Director General
• Each RTI is headed by a Commissioner
• Each MSTU is headed by an Income Tax Officer

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The National Academy of Direct Taxes Training
Programmes

• Induction training to newly recruited IRS
  officers
• Training for in-service officers
• Need based courses
• Specialized courses
• Cadre based training
• OECD courses
• Training for other organizations
• Training for foreign tax officers

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Challenges before NADT

• As per Vision 2010 of the Income Tax Department,
  the GOI expects that each employee is trained for
  at least one week in a year/5 weeks over 5 years
• NADT expected to impart training in information
  technology with emphasis on working in fully
  networked environment
• Emphasis on making Income Tax employees more
  professional, citizen friendly and delivery
  oriented through training
• Consequent multiplication of work load Hence
  the Need for strengthening the training setup

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Problems faced by NADT

• Acute shortage of manpower Inadequate
  sanctioned strength
• Many positions remaining vacant
• Not many qualified or capable officers opting for
  posting in training sector
• Long working hours 7 days a week No
  compensation for additional burden
• Training allowance _at_ 15 is not sufficient
  compensation
• Lack of other facilities or incentives

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Main Recommendations Training allowance

• Training allowance for faculty to be increased
  from 15 to 30 of basic pay as was being paid
  prior to 1992
• Training assistance allowance _at_ 20 of basic pay
  to be paid to assisting staff
• Reasons
• Rate was reduced to 15 due to financial crisis
  in 1992 Now the economy is on a sound footing
  and position of revenues is robust
• This would compensate for additional working
  hours
• Will act as an incentive for the capable and
  committed officers to take postings in training
  sector

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Main Recommendations Incentives for new
initiatives and projects

• Tax departments of many countries have requested
  NADT to train their manpower
• Designing and executing such training programmes
  involves lot of hard work including in depth
  study of tax laws of other countries
• Through such training programmes, revenues can be
  earned and surplus can be used for betterment of
  training infrastructure
• Incentives need to be given to the faculty so
  that they take up such initiatives/projects
• Incentives can be provided out of surplus
  generated

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Main Recommendations Incentives for new
initiatives and projects

• Scheme proposed for sharing surplus from such
  programmes/projects 50 to go to the Institute,
  25 for faculty conducting the programme, 15 for
  other faculty and 10 for assisting staff
• To check misutilization- standard workload can be
  specified for making faculty members eligible
• Such schemes are being successfully implemented
  in institutes like YASHADA, IIMs and IITs

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Main Recommendations Other incentives and
facilities

• Provision for sumptuary allowance to faculty
  members to compensate for expenditure incurred
  on extending hospitality to trainees and guest
  faculty
• Provision for monthly transport allowance
  irrespective of distance from residence
• Preference to trainers over others in sanction of
  government advances/loans
• Biannual provision for LTC to each child of the
  trainer studying at a station other than the
  station where the trainer is posted
• Choice posting to be given after completion of
  tenure in training sector

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Main Recommendations Training of trainers for
capacity building

• With the globalization of economy, tax evasion
  methods have gone high tech
• Need for ensuring that the revenue which should
  flow to the Government of India does not go out
  of the country
• Capacity building of trainers is necessary to
  ensure that other officers of the Department are
  appropriately trained
• Trainers need to be trained in training
  institutes of international repute in subject
  areas like
• fiscal policy,
• money laundering,
• international taxation,
• e-investigation and
• training methodologies
• Budget to be allocated and placed at the disposal
  of NADT/CTIs for meeting the training needs of
  trainers

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Main Recommendations Mid career training
programmes

• Tax administrators expected to combine
  contrasting qualities of ace investigator with
  that of a citizen friendly and delivery oriented
  officer
• Need for arranging the best possible training in
  India and/or abroad
• NADT should be authorized to enter into
  collaboration with institutions of repute like
  IIMs, Harvard, Duke, International Tax Academy of
  IBFD etc
• Training programmes with comprehensive inputs
  need to be planned at the time of each promotion
  involving change in job profile
• In Income Tax Department, there are three such
  stages
• On promotion as JCIT
• On promotion as Commissioner
• On promotion as Chief Commissioner
• This type of mid career training programmes have
  already commenced for IAS officers

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Main Recommendations Deputation assignments for
IRS officers

• The officers of the Indian Revenue Service, like
  their counterparts from Indian Administrative
  Service, may be allowed to take up deputation
  assignments with
• Organizations under the UNO
• Constitutional and statutory bodies
• Multilateral and bilateral organizations
• International financial institutions e.g World
  Bank, IMF, ADB etc
• Apex bodies of Industry and Commerce
• Organizations registered under the Societies
  Registration Act
• Specified NGOs
• Organizations registered under the Charitable
  Trusts Act t

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Main Recommendations Delegation of more
financial powers to Heads of CTIs

• In order to meet the dynamic needs of training
  sector, some more powers need to be delegated to
  Heads of CTIs
• The condition of seeking approval of Directorate
  of Printing for incurring expenditure above Rs
  20,000/- per annum on printing needs to be waived
• The remuneration payable to experts/eminent
  persons coming as guest faculty needs to be
  increased from existing abysmally low rate of Rs
  250/- per session The authority to fix the
  amount may be delegated to the heads of CTIs

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Main Recommendations Shortage of manpower
sanction of new posts

• NADT does not have any permanent faculty to teach
  even specialized subjects like
• Accountancy
• Business Laws
• Computers
• Management
• Urgent need for sanction of 4 posts of Professors
  and 4 posts of Associate Professors along with
  the supporting staff
• Creation of such posts has already been
  recommended vide study report dated 30th March
  1993 submitted by IIPA on behalf of DOPT

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Other Recommendations

• NADT is not in favour of flexi-time particularly
  because training programmes are conducted
  according to pre-fixed schedule and time table
• Need for major changes to performance appraisal
  system
• ACR to be replaced by APR
• Copy of the APR to be given to the officer
  reported upon
• System of 4 ratings to be replaced by 8 ratings
• No need for amending Art. 311, Sec. 197 of CrPC
  or Secs.17 19 of Prevention of Corruption Act
  as these provide reasonable protections from
  frivolous and malicious actions intended to
  prevent govt servants from discharging their
  duties fearlessly and objectively

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JUSTIFICATION FOR SPECIAL TREATMENT TO INCOME TAX
DEPT AND ITS TRAINING SECTOR

• Income Tax Department has given the highest
  productivity of manpower at the lowest cost
  (source data available on websites of OECD and
  CAG)
• Transparency International rated the Income Tax
  Department as one of the least corrupt
  departments of Government of India based on
  ORG-MARG survey
• Providing better pay allowances to the
  employees of Income Tax Department, particularly
  of its training sector, would lead to substantial
  increase in revenue collections thereby yielding
  high return on the investment

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Productivity of Manpower Year 2004
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Productivity of Manpower
Detailed Data for India
includes Rs 823 crores of other taxes
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Declining Trend in Cost of Collection in India
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Overall Corruption Score Different Sectors
Police,Health,Power,Education even Judiciary
were rated as more corrupt
SOURCE TI ORG MARG SURVEY
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Percentage of persons who interacted faced
corruption
Only 11 income tax payers faced corruption
whereas 67 power consumers 43 litigants paid
bribes
SOURCE TI ORG MARG SURVEY
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• It is fundamentally wrong to pay officers, on
  whose attitude and conduct
• very large sums of money depend,
• at such extremely meagre rates
• - Nicholas Kaldor
• THANK YOU